An investment has an NOI of $40,000. There is market rate mortgage financing available for 75%...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An investment has an NOI of $40,000. There is market rate mortgage financing available for 75% of the value at 7.5% interest per year with monthly payments, an amortization over 20 years, and an equity dividend rate (RE) of 9.5%. What is the value rounded to the nearest $100,000? Use the band-of- investment technique. An investment has an NOI of $40,000. There is market rate mortgage financing available for 75% of the value at 7.5% interest per year with monthly payments, an amortization over 20 years, and an equity dividend rate (RE) of 9.5%. What is the value rounded to the nearest $100,000? Use the band-of- investment technique.
Expert Answer:
Answer rating: 100% (QA)
The bandofinvestment technique is a method used to estimate the value of incomeproducing properties ... View the full answer
Related Book For
Accounting Information Systems
ISBN: 9780132871938
11th Edition
Authors: George H. Bodnar, William S. Hopwood
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Which of the following questions involve microeconomics, and which involve macroeconomics? In each case, explain your answer. a. Why did consumers switch to smaller cars in 2008? b. Why did overall...
-
How would you convert N-ethylbenzamide to each of the following products? (a) Benzoic acid (b) Benzyl alcohol (c) C 6 H 5 CH 2 NHCH 2 CH 3
-
For a single degree of freedom spring-mass-damper system with \(m=1 \mathrm{~kg}\), \(k=4 \times 10^{4} \mathrm{~N} / \mathrm{m}\), and \(c=10 \mathrm{~N}-\mathrm{s} / \mathrm{m}\), complete the...
-
On December 31,2010, the Accounts Receivable balance of Alterations Express is $300,000. The Allowance for Uncollectible Accounts has a $3,900 credit balance. Alterations prepares the following aging...
-
Nina is the auditor for Geiger Construction, a local builder. Geiger recently renovated a historic building in downtown Kingston. The building, which consists of 5 shops, is owned by the Restoring...
-
8. 10 Points True Machines, Inc. would like to develop a plan for building and shipping their Premium Generator product to satisfy customer orders. The Murrysville plant can produce 17 units and the...
-
Rhonda, a CPA and a member, has just signed an engagement letter with Beachboy Fashions, Inc. to provide monthly bookkeeping and complied financial for the company beginning in the year 20x5. In...
-
Which of the following characteristics does not usually apply toprocess operations systems? a)Each unit of product is separately identifiable. b)Partially completed products are transferred...
-
In the figure below, a force F of magnitude 6.70 units acts on an object at the origin in a direction 8 = 34.0 above the positive x-axis. A second force F of magnitude 5.00 units acts on the object...
-
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity - based costing system contains the following six activity cost pools and activity rates: Activity Cost...
-
Consider a tank that contains pure carbon dioxide at 8000 kPa and room temperature (3WC). At this condition the tank holds the same mass of CO2 that would occupy a volume of 4 m3 at 25C and 100 kPa...
-
A company lends $51,000 with 7% interest on May 1, 2024. This amount plus interest is due on April 30, 2025. Record the adjusting entry on December 31, 2024. (If no entry is required for a...
-
Accounts were taken from Henry Company s unadjusted trial balance at December 3 1 , 2 0 2 7 : Accounts payable . . . . . . . . . . . . $ 5 9 , 0 0 0 Accounts receivable . . . . . . . . . $ 4 7 , 0...
-
Using the balance sheet and income statement, calculate the following two financial ratios for the firm, including the internal and sustainable growth rates. - market-to-book ratio - price earnings...
-
What are the key dimensions of critical thinking 2. Watch the NBC Learn video on Diet Scams. What types of claims are made in this video Are they valid Elaborate on your responses. Discuss this video...
-
Beard Manufacturing is extremely security conscious, especially in the area of its information system. Because of this, the director of the computer center has installed a sophisticated computer...
-
Why do accountants tend to prefer process- oriented flowcharts rather than object- oriented diagrams?
-
In a large manufacturing organization supplying goods and services, several departments may be involved in the processing of customer complaints and the issuance of any resulting credit memos....
-
The box frame is subjected to a uniform distributed loading \(w\) along each of its sides. Determine the moment developed in each corner. Neglect the deflection due to axial load. EI is constant. E A...
-
Using a job board on the Web, list and briefly describe five positions in your field in your state. What skills, experience, and background does each position require? What is the salary range for...
-
As the manager of an electronics retail store, you guarantee that you will not be undersold. If a customer finds another retailer selling the same equipment at a lower price within one month of his...
Study smarter with the SolutionInn App